TheWorks.co.uk PLC Full Year Trading Update (4388Y)
May 09 2019 - 1:00AM
UK Regulatory
TIDMWRKS
RNS Number : 4388Y
TheWorks.co.uk PLC
09 May 2019
9 May 2019
TheWorks.co.uk plc
Full Year Trading Update
TheWorks.co.uk plc ("The Works" or the "Company"), the
multi-channel value retailer of gifts, arts, crafts, toys, books
and stationery, announces today a trading update covering the
52-week period to 28 April 2019 (the "Period").
Revenue increased by 13.2% year-on-year, with overall
like-for-like ("LFL") sales growth of 3.0%(1) . This performance
was driven by growth both in stores and online, with a particularly
pleasing performance from our Click & Collect service.
During the Period, The Works continued its successful store
rollout strategy, opening a net 50 new stores, taking the total
number of stores trading to 497. Returns on new stores in the
Period have been particularly strong, reflecting continued
discipline on site selection, supported by an increasingly
favourable UK retail property market. The Company has a strong
pipeline of openings moving into the new financial year and will
open its 500(th) store tomorrow in Winchester. Management remain
confident of the potential to expand the store portfolio to up to
1,000 stores in the UK and Ireland.
The Works delivered its eighth, consecutive, record Christmas
performance in the Period but, as a result of the widely reported
economic and political uncertainty in the UK, like-for-like sales
growth has softened since the turn of the year. Consequently, the
Company now expects its adjusted profit before taxation(2) to be
around the lower end of current market expectations.
The Company continues to focus on its proven four pillar growth
strategy of new store rollout, LFL sales growth, the development of
its multi-channel proposition and margin enhancement. This,
together with its unique value proposition and tight cost control,
positions the business well for the future.
Kevin Keaney, Chief Executive Officer of The Works,
commented:
"Overall, we have had a successful year as we continued to
expand our store footprint and online proposition and introduce new
customers to The Works. We achieved another record Christmas, solid
like-for-like sales growth and further cash margin improvement in
the year. Our differentiated proposition, offering a wide range of
new products at outstanding value and delivered by our highly
engaged colleagues, continues to be well received by our
customers.
"Notwithstanding the more uncertain backdrop since January, the
business has multiple growth levers and we remain confident in the
future prospects for The Works."
The Company will announce its preliminary results for the Period
on 3 July 2019.
Enquiries:
TheWorks.co.uk plc via Teneo
Kevin Keaney, CEO
Gavin Peck, CFO
Teneo
Ben Foster
Haya Herbert-Burns
Rachel Miller +44 20 7420 3190
Notes to Editors:
TheWorks.co.uk plc is a multi-channel value retailer of gifts,
arts, crafts, toys, books and stationery - offering customers a
differentiated proposition as a value alternative to full price
specialist retailers. The Works sells its quality products at
affordable prices across four product zones comprising Kids; Arts,
Craft & Hobbies; Stationery; and Family Gifts, which are
supplemented by both seasonal and regional offerings.
As at 28 April 2019, the Group operated a network of 497 stores
in the UK and Ireland. Stores can be found on high streets, in
retail parks, shopping centres, factory outlets and as concessions
in various locations. The Works also has a significant and growing
online presence that enables customers to shop any time of the day,
with an extended range of products not available in stores. This
multi-channel offering is one of the first of its kind in the value
retail sector and includes a popular Click & Collect service,
driving additional footfall and sales in store.
(1) LFL sales are defined as the year-on-year growth in gross
sales from stores which have been opened for a full 63 weeks (but
excluding sales from stores closed for all or part of the relevant
period or prior year comparable period), and from its e-Commerce
platform, calculated on a calendar week basis.
(2) Adjusted profit before tax excludes certain adjusting items,
principally costs relating to the IPO, debt re-financing and set up
costs in relation to the relocation of the e-Commerce warehouse to
a third party supplier. It also includes an adjustment to reflect
the net financing costs that would have been recognised in the year
had the IPO and debt refinancing completed on 29 April 2018.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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